The solutions are not pretty either. One solution is to mandate a minimum service level for ISPs. Then you have to add the lines companies - mostly Telecom. Pushing that cost onto them will require they have to get creative in providing services and inter-agreements to recover that cost.
This will increase efficiency and demand for some services like HD medical and specialist consultations, live concerts, backup, cloud computing, and will accelerate falling demand for others like video rental & sky content you are not interested in.
IMHO it would be disruptive, but not an instant change at all.
My feeling is UFB will move us towards this environment significantly, but the market will remain fragmented.